(PR NEWSWIRE) Identix Reports Fiscal Second Quarter, First Six Months Results
Identix Reports Fiscal Second Quarter, First Six Months Results; Revenue Up 21%
and 22%, Respectively, Over Year-Earlier Periods
SUNNYVALE, Calif., Jan. 24 /PRNewswire/ -- Identix Incorporated
(Amex: IDX), the worldwide leader in providing biometric authentication,
security, and identification solutions, today reported that revenue for its
fiscal second quarter and first six months ended December 31, 2000, increased
21 percent and 22 percent, respectively, when compared to the prior year's
similar periods. For the 2001 fiscal second quarter, revenue grew to
$21.2 million, versus revenue of $17.5 million in the fiscal 2000 second
quarter. The net loss for the second quarter was $4.5 million, or $0.13 loss
per share, before an expected non-cash charge of $594,000, or $0.02 per share,
related to stock option expenses. This compares to a net loss of
$3.0 million, or $0.10 loss per share, in the year earlier period. For the
first six months, revenue increased to $42.6 million, with a net loss of
$7.9 million, or $0.24 loss per share, before expected non-cash charges of
$1.9 million related to preferred stock and stock option expenses. This
compares to revenue of $35 million, with a net loss of $6.4 million, or
$0.21 loss per share, in the year-earlier period.
Identix CEO Robert McCashin commented, "The fiscal second quarter was one
of excellent forward progress for the Company. We ended the quarter in a
stronger position than ever before, with strong demand across the board for
our products and services and the strongest list of partnerships and
relationships in the Company's history.
"During the quarter, we hit a number of significant milestones. Toshiba,
the world's largest supplier of mobile PCs, joined our platinum list of OEM
partners, helping cement our industry-leading position as the provider of
biometric security solutions to the world's top suppliers of mobile computers
and to the world's leading desktop PC OEMs. We plan to add OEM partners to
this list during the second half of this fiscal year.
"Additionally," McCashin continued, "we experienced increasing acceptance
of our biometric security solutions by enterprise customers throughout the
world. We continue to receive significant enterprise leads from Microsoft
sales staff demonstrating our biometric solutions with Windows 2000. Several
of these leads have already progressed to programs where our technology is
being tested on an initial basis. There are more companies than ever before
employing our biometric security solutions in some stage of deployment,
ranging from as few as five seats, to as many as 1,500 seats, with several in
the hundred-plus seat range.
"Among these companies are more than 10 financial institutions throughout
the world that are currently implementing our biometric security solutions in
test programs, including a major European banking institution, which has
installed and is using our fingerprint biometric security solutions to secure
its 900-plus seat network," he said. "The biometric security solution in use
by the Bank includes our BioLogon(TM) software and the Compaq FIT reader,
which incorporates the Identix DFR(TM)-200 optical fingerprint reader. While
we will always strive to provide the names of the companies and institutions
implementing our technology, due to the very sensitive information contained
and protected on its network, we must respect this Bank's wishes to remain
anonymous.
"Additionally," McCashin said, "we currently have 12 healthcare
institutions throughout the country implementing our biometric security
solutions in initial programs designed to help them meet the requirements laid
out in the recently passed Health Insurance Portability & Accountability Act
(HIPAA). We believe HIPPA represents an excellent opportunity for us as
literally thousands of healthcare related companies must meet the stringent
confidentiality requirements laid out in the Act. Our Security Division is
aggressively targeting the healthcare industry and we will provide updates, as
appropriate, on our progress in this area.
"In December," he said, "we announced that the Florida Supreme Court
selected our solutions for enterprise-wide security on its 650 seat Wide Area
Network. This is an important adoption, not only because it is an excellent
example of our ability to secure a network on an enterprise-wide basis, but
also because it provides us with a well-respected reference customer who is
already referring additional State agencies to us.
"Early in January," McCashin said, "VeriSign invested $2 million in
Identix as an itrust(TM) partner, and named Identix as a premier supplier of
biometric solutions, including biometric authentication, validation and
security products and services. We look forward to VeriSign playing a
significant role in support of the design, development, marketing and roll-out
of itrust(TM) services to provide a complete trusted and secure transaction
management offering."
Revenue from the Company's Security Division was $2.1 million, a
sequential increase of 36 percent, when compared to Security revenue of
$1.5 million in the fiscal 2001 first quarter. Security revenue was down when
compared to Security revenue of $2.3 million in the second quarter of the last
fiscal year. According to President & COO James P. Scullion, the Company saw
a strong increase during the fiscal second quarter in the demand for its
DFR(TM)-300 miniature optical fingerprint reader, which is used in PCMCIA
Cards to secure mobile PCs. "We are experiencing increasing demand for our
security solutions overall, as we are now able to supply a total enterprise-
wide security solution across desktops and laptops," Scullion said. "Toshiba
announced on Monday that their PC Card Fingerprint Reader, which employs the
Identix DFR-300 optical fingerprint reader and Identix's BioLogon software,
will be available in February. Toshiba joins Compaq and Dell as providing
this solution to their mobile PC customers. We believe we will continue to
see increasing demand for Identix's BioTouch(TM) PC Card Fingerprint Reader,
as well as for our desktop solutions."
The Company's Imaging Division continued to be profitable in this fiscal
year, and showed a strong increase, over the previous year's fiscal second
quarter, in revenue driven by demand for its Live Scan products and customer
service programs. Fiscal 2001 second quarter Imaging revenue increased by
24 percent to $6.3 million, when compared to Imaging revenue of $5.1 million
in the year-earlier period. "During the quarter," Scullion said, "our Imaging
Division secured contracts for live scan systems with three national airports
to assist each airport in complying with employee background checks under the
newly passed Airport Security Improvement Act of 2000. Over the next two to
three years, between 100 and 250 airports will be required to comply with this
Act. We will be actively marketing our live scan systems to these airports."
The Company's Government Services Division also continued to be profitable
and saw a substantial increase in revenue generated in part by execution on
existing contracts and new contracts for ANADAC's services. Fiscal 2001
second quarter Government Services revenue increased to $12.8 million, a
27 percent increase over year-earlier revenues of $10.1 million. This
Division received strong revenue contribution from new and existing contracts
with the Navy. "ANADAC has always been a good conduit for moving our Security
solutions into the Federal market," Scullion said. "We plan to leverage the
tremendous success ANADAC has had in penetrating new and existing Federal
programs to sell even more of our biometric security solutions into these
markets, and will be looking for them to provide an even greater sales
channel."
"We look forward to additional forward momentum across all Company lines
of business during our fiscal third quarter," McCashin said. "We will look
for our Imaging division to continue to establish new markets, both in
applications, as well as in territory, and expect them to continue to grow
revenue on a year-to-year comparison. Going forward ANADAC will be tasked
with providing additional Security sales into the Federal markets, as well as
securing new contracts and executing on existing contracts.
"Our primary focus remains on adding and announcing additional end-users
of our biometric security solutions, which we believe will be reflected in an
increase in Security revenue for the fiscal third quarter," he said. "We will
also continue to focus on adding additional itrust(TM) partners, specifically
in the ISP and/or portal area, in anticipation of the initial roll-out of
itrust(TM) services in our fiscal 2001 fourth quarter, which ends June 30,
2001.
"This continues to be a time of investment into the future of Identix as
we strive to insure that all of our resources -- from staffing to security and
services offerings -- are prepared to fully take advantage of what we perceive
to be the huge opportunities before us in the commercial and government
markets," McCashin added. "We believe biometrics will become the heightened
security solution of choice for both large and small enterprises in all
industries, and we intend to be well-positioned to maintain our industry
leading market share."
Scullion said the Company's balance sheet continues to be strong. As of
December 31, 2000, the balance sheet reflected a current ratio of 2.6:1,
working capital of $30.9 million, including cash and cash equivalents of
$12.5 million, no long-term debt, credit lines available and shareholder
equity of $60.2 million.
About Identix
Identix Incorporated, www.Identix.com, is a leader in designing,
developing, manufacturing and marketing products for the capture and/or
comparison of fingerprints for security, anti-fraud, law enforcement, physical
access and other applications. Identix designs and develops proprietary,
cost-effective, security products and solutions for personal identification
and verification. Through its itrust(TM) division, Identix will offer an array
of Internet and wireless Web secure transaction processing services, and
provide a wide range of applications to markets that include corporate
enterprise security, Intranet, extranet, and Internet, wireless Web access and
security, E-commerce, government and law enforcement agencies. Identix's
partners include Motorola, Compaq, Toshiba, VeriSign, Key Tronic, SCM Micro,
Cherry GmbH and Unisys.
The statements in this release that relate to future plans, events or
performance are forward-looking statements that reflect the Company's current
expectations, assumptions and estimates of future performance and economic
conditions. Such statements are made in reliance on the safe harbor
provisions of the Securities Act of 1933 and the Securities Exchange Act of
1934. The Company cautions investors that any forward looking statements
involve risks and uncertainties that may cause actual results to differ
materially from those expressed or implied in such forward looking statements.
Such risks and uncertainties include, without limitation, risks and
uncertainties associated with: development of the marketplace for biometrics
solutions; demand for the Company's products and services; the ability of the
Company's alliances to succeed and in particular, the ability of the Company
to complete product development, successfully manufacture its products in
volume and broadly disseminate the Company's products; increasing levels of
competition in the space for wired and wireless web security services; the
perceived need for secure communications and commerce in such markets; and
other risks as identified in the Company's SEC filings. The Company disclaims
any intention or obligation to publicly update these forward-looking
statements to reflect events or circumstances that occur after the date hereof
or to reflect the occurrence of unanticipated events.
For further information, please contact investors, Damon Wright, Director
of Investor Relations of Identix Incorporated, 408-731-2000,
dwright@identix.com; or media, Suzanne Matick, 831-479-1888,
smatick@pacbell.net, for Identix Incorporated.
IDENTIX INCORPORATED
CONSOLIDATED BALANCE SHEETS
December 31, June 30,
2000 2000
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 10,639,000 $ 15,620,000
Restricted cash 1,817,000 --
Accounts receivable, net 30,887,000 28,352,000
Inventories 4,757,000 5,180,000
Prepaid expenses and other assets 1,786,000 1,188,000
Total current assets 49,886,000 50,340,000
Property and equipment, net 2,919,000 2,632,000
Intangibles and other assets 30,178,000 30,546,000
Total assets $ 82,983,000 $ 83,518,000
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED
STOCK AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable $-- $430,000
Accounts payable 10,489,000 8,570,000
Accrued compensation 3,268,000 2,894,000
Other accrued liabilities 1,973,000 1,700,000
Deferred revenue 3,297,000 2,561,000
Total current liabilities 19,027,000 16,155,000
Other liabilities 56,000 90,000
Total liabilities 19,083,000 16,245,000
Redeemable convertible preferred stock 3,702,000 --
Shareholders' equity:
Common stock 335,000 330,000
Additional paid-in capital 126,050,000 123,365,000
Accumulated deficit (66,006,000) (56,241,000)
Accumulated other comprehensive loss (181,000) (181,000)
Total shareholders' equity 60,198,000 67,273,000
Total liabilities, redeemable
convertible preferred stock and
shareholders' equity $ 82,983,000 $ 83,518,000
IDENTIX INCORPORATED
SELECTED CONSOLIDATED FINANCIAL DATA
(UNAUDITED)
Three Months Ended Six Months Ended
December 31, December 31,
2000 1999 2000 1999
Revenues:
Product revenues $8,445,000 $7,459,000 $17,615,000 $14,497,000
Service revenues 12,781,000 10,067,000 24,978,000 20,496,000
Total revenues 21,226,000 17,526,000 42,593,000 34,993,000
Costs and expenses:
Costs of product
revenues 4,973,000 4,534,000 10,296,000 8,626,000
Costs of service
revenues 11,047,000 8,725,000 21,732,000 17,735,000
Research,
development &
engineering 2,223,000 1,757,000 4,387,000 3,963,000
Marketing and
selling 4,064,000 3,051,000 7,369,000 5,146,000
General and
administrative 2,977,000 1,731,000 5,917,000 4,456,000
Amortization of
acquired intangible
assets 832,000 863,000 1,664,000 1,748,000
Total costs and
expenses 26,116,000 20,661,000 51,365,000 41,674,000
Loss from operations (4,890,000) (3,135,000) (8,772,000) (6,681,000)
Interest and other
income (expense),
net 444,000 192,000 843,000 373,000
Interest expense (42,000) (30,000) (65,000) (77,000)
Loss before taxes (4,488,000) (2,973,000) (7,994,000) (6,385,000)
Provision for income
taxes (39,000) -- (56,000) --
Loss before equity
interest in joint
venture (4,527,000) (2,973,000) (8,050,000) (6,385,000)
Equity interest in
joint venture 64,000 (73,000) 135,000 (55,000)
Net loss before
preferred stock,
warrant and
option expenses $(4,463,000) $(3,046,000) $(7,915,000) $(6,440,000)
Net loss per share
before preferred
stock, warrant and
option expenses $(0.13) $(0.10) $(0.24) $(0.21)
Preferred stock,
warrant and
option expenses (594,000) (11,000) (1,853,000) (89,000)
Net loss $(5,057,000) $(3,057,000) $(9,768,000) $(6,529,000)
Basic and diluted
net loss per
share $(0.15) $(0.10) $(0.29) $(0.21)
Weighted average
common shares used
in basic and diluted
net loss per share
computation 33,439,000 30,915,000 33,323,000 30,780,000
SOURCE Identix Incorporated
-0- 01/24/2001
/CONTACT: investors, Damon Wright, Director of Investor Relations of
Identix Incorporated, 408-731-2000, dwright@identix.com; or media, Suzanne
Matick, 831-479-1888, smatick@pacbell.net, for Identix Incorporated/
/Web site: identix.com
(IDX)
CO: Identix Incorporated
ST: California
IN: CPR
SU: ERN
*** end of story *** |
